ALBANYNew York Power Authority (NYPA) President and Chief Operating Officer
Eugene W. Zeltmann called Tuesday for a three-pronged approach to meeting New York
States electricity needs and warned that the current easing in growth of demand for
power is a temporary respite that should be used to prepare for the future.

"The blueprint for New Yorks energy future should resemble a three-legged
stoolone balanced on generation, transmission and energy efficiency," Zeltmann
said in testimony at a public hearing on the Draft State Energy Plan. "All three of
these elements are needed to provide our state a solid foundation for economic growth and
environmental protection.

"We will need to build new, cleaner power plants, improve and enhance our
transmission system, make more efficient use of energyand explore new, renewable
sources of power," said Zeltmann. He noted that the Power Authority is playing vital
roles in each of these areas while also using its low-cost electricity to help protect
nearly 420,000 jobs at businesses and non-profit organizations throughout the state under
Gov. George E. Patakis Power for Jobs program and other initiatives.

Testifying at the hearing conducted by the State Energy Planning Board, which prepared
the draft plan, Zeltmann said the national economic downturn and the events of Sept. 11
have slowed growth in electricity use, but that this trend would not continue.

"As the economy recovers, the ongoing growth in the demand for electricity will
certainly accelerate," he told the panel at the state Department of Environmental
Conservation building. "We must take advantage of this brief respite and view it as
an opportunity to prepare for the future.

"Forward-looking energy policy can be a casualty of the complacency that
accompanies seemingly sufficient power supplies and lower prices," Zeltmann said.
"Fortunately, the efforts of Governor Patakiincluding the work of the Energy
Planning Boarddemonstrate that New York State is working to avoid that pitfall. The
Draft State Energy Plan recognizes the sustained growth of energy demand, as well as the
crucial role of energy efficiency in improving air quality and cutting our dependence on
foreign oil."

Zeltmann cited the draft plans "essential sense of balance" in
addressing each element of the three-part energy strategy and said "it will provide
an excellent map to a better energy future for all New Yorkers."

Summarizing the Power Authoritys contributions in the three areas, Zeltmann noted
that NYPA:

Is investing more than half a billion dollars in upgrades of its
St. Lawrence-Franklin D. Roosevelt and
Niagara hydroelectric projects, has applied for a new
federal license for St. Lawrence-FDR and is preparing for the Niagara relicensing. The
existing licenses expire in 2003 and 2007, respectively.

Is installing a sophisticated transmission control device, a convertible static
compensator (CSC), at its Marcy Substation near Utica "in a bold move to strengthen
the states power delivery system without building new lines." The $52 million
project will boost statewide transmission capacity by 200 megawatts or more. Its first
phase, completed last year, increased power flows by 114 megawatts.

Has more than doubled its investment in energy-efficiency and clean-energy
technologiesto over $100 million a yearunder Governor Patakis
leadership. The projects, at public facilities throughout the state, save taxpayers nearly
$75 million a year while avoiding the annual release of more than 500,000 tons of
greenhouse gases.

Is pursuing an array of clean energy initiatives involving fuel cells, microturbines,
solar power and other renewable energy sources. Current activities include a project to
harness greenhouse gases from the Town of Colonies landfill to produce nearly 3,000
kilowatts of electricity.

Has put more than 250 clean electric and hybrid-electric vehicles on the road in its
own fleet and those of its customers. Recent efforts include the NYPA/Th!nk Clean Commute,
the nations largest electric-vehicle station car demonstration, which will involve
100 commuters in the New York metropolitan area.